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Presidents’ Influence on Retirement Readiness Can Endure

Government Affairs

The ratification of the 22nd amendment in 1951 may limit U.S. Presidents’ tenure, but that doesn’t mean their influence over a host of areas ends when their terms of office do. And that includes retirement readiness.

In “How 5 U.S. Presidents Continue to Influence Your Retirement Readiness Today,” an article appearing in Forbes, Ron Carson discusses the actions of five presidents he considers to have made especially important contributions to their fellow citizens’ retirement readiness. “Each signed legislation into law that has not only changed how and when we retire, but in some cases, enabled generations of Americans to retire with dignity who otherwise would not have had the financial means or supports to do so,” writes Carson.

Franklin Delano Roosevelt (1933-45). On Aug. 14, 1935, FDR signed the Social Security Act into law. That measure established a system that provides federal benefits for retired workers and federal aid to the states to enable them to provide financial assistance to needy seniors in their boundaries. The intention was to reduce future dependency among the elderly and to assure workers some kind of income after their years of work. Cohen notes that the Social Security Administration reports that Social Security will replace approximately 40% of the earnings of Americans with “average earnings.”

Lyndon B. Johnson (1963-69). In July 1965, LBJ signed into law under the Social Security Act a measure creating Medicare, federally funded program that covers medical and hospital care for elderly Americans. Medicare continues to serve that purpose today, with subsequent modifications providing coverage for prescription drugs, emergency room visits and other services.

Gerald R. Ford (1974-77). On Sept. 2, 1974, President Ford signed into law the Employee Retirement Income Security Act of 1974. Carson highlights what the measure provides, including “important protections retirement plan participants enjoy today,” such as minimum standards to protect individuals in private plans; the requirement that plans provide certain disclosures and a grievance and appeals process; sets participation, vesting, accrual and funding standards; establishes fiduciary responsibilities; gives participants the right to sue for benefits and fiduciary breaches; and guarantees coverage when necessary through the Pension Benefit Guaranty Corporation.

Jimmy Carter (1977-81). On Nov. 6, 1978, President Carter signed the Revenue Act of 1978 into law, a measure which included a provision he notes “paved the way for the modern 401(k) retirement plan.”

Bill Clinton (1993-2001). On Aug. 5, 1997, President Clinton signed into law the Taxpayer Relief Act of 1997, a measure that established the Roth IRA, which Carson says is “considered by many today to be a cornerstone of retirement planning.”